Research On The Supervision Of Yunnan Shadow Banking

Since Paul McCulley first proposed the concept of Shadow Banking in 2007,it is considered as an important motivating factor in the financial crisis in 2008.Scholars also had different opinions on the definition of Shadow Banking.As the Shadow Banking System became popular in the global financial markets,Shadow Banking has expanded rapidly in Chinese style,attracting worldwide attention of scholars and regulators gradually.Shadow Banking,which is also known as the Shadow Banking System.It is non-bank financial institutions and their tools as well as their products that exercised functions of banking but are not regulated or less.This paper focus on the actual development of Shadow Banking in China,with basis of summarizing the research results domestically and abroad in recent years.Also it sorts out the definition,operation mechanism and composition of Chinese-style Shadow Banking and indicates the scale of development on Chinese-style Shadow Banking with a lot of empirical data and charts.And due to the increasing advancement of the Shadow Banking System,it has continuously made its improvement of status in the financial system,and accordingly,Shadow Banking System showed an increasingly powerful influence on commercial banks and monetary policy,it also has both positive and negative effects on the development of the financial system.The Shadow Banking System is easily subject to the accumulation of systematic risk,bring its instabilities to the financial market.However,considering the Shadow Banking System played an active role in the regulation of liquidity,profitability enhancement,improvement of supply on credit intermediaries as well as meeting the needs of investors and financiers,we should still look upon this phenomenon rationally,give proper guidance to the development of Shadow Banking,deal with the relationship between financial innovation and regulation reasonably and promote the innovation of financial product.Establish a "normalized" based regulatory system countermeasures towards Shadow Banking,perfect internal control mechanism of Shadow Banking.And build a firewall between shadow banks and commercial banks in order to prevent and avoid risks.While strengthening information disclosure system,laws and regulations of the Shadow Banking would be issued to promote exhaustive transformation of financial and service industries.